GTM Sauce

Simply · B2C · creative hobby learning apps

Price each country with your own Big Mac-style index, not currency conversion

Big ARPU jump in most countries; a few didn't work and were adjusted

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What they did

Years ago started with the Big Mac index itself, then evolved a custom index combining purchasing power with category-specific factors (what people pay to learn an instrument or drawing). Modeled one pricing strategy for all geos, rolled it out everywhere as a test, then optimized per geo over time and revisits as the app matures and reaches new audiences.

What happened

Significant, dramatic ARPU increase in the vast majority of geos; some geos surprisingly didn't work and needed adapting.
“So, we created our own pricing index, like our own Big Mac index, similar concept that takes into account not similarly to the Big Mac, like the purchase power in that geo, but also other considerations”
Yoav Sharon
“We saw significant dramatic ARPU increase. In some geos, we were surprised that it didn't work, but we had to adapt there”
Yoav Sharon

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